Taiwan’s Automobile Production Bases and Results in H1 2026

Taiwan’s automotive production in the first half of 2026 fell 2.6% year-on-year to 115,000 units. While the extension of the commodity tax reduction measure was finalized, consumers continued to hold off on purchases amid uncertainties surrounding tariff exemptions for US-made passenger vehicles. Additionally, at Kuozui Motors—which manufactures Toyota vehicles—a decline in CBU exports further dragged down overall production volume. However, despite this stagnation in output, signs of a structural shift are emerging regarding Taiwan’s positioning as an automotive manufacturing hub.